Variance Computations and Explanations Tarptent manufactures camping tents from a lightweight synthetic fabric. Assume the company's two-person tent has a standard materials cost of $60, consisting of 4 yards of fabric at $15 per yard. The standards call for 1.5 hours of assembly at $20 per hour. The following data were recorded for October, the first month of operations: Fabric purchased 6,500 yards x $ 14.50 per yard Fabric used in production of 1,200 tents 4,850 yards Direct labor used (a) Compute all standard cost variances for materials and labor. Materials price variance (usage basis). AnswerFU Materials price variance (purchase basis) Answer AnswerFU Materials quantity variance Answer AnswerFU Labor rate variance Answer AnswerFU Labor efficiency variance Direct materials Direct labor (b) Determine the standard variable cost of 1,200 tents produced, separated into direct materials and labor. Answer Answer 1,850 hours x $19.50 per hour Total standard variable cost Please answer all parts of the question. Answer Answer Answer AnswerFU
Variance Computations and Explanations Tarptent manufactures camping tents from a lightweight synthetic fabric. Assume the company's two-person tent has a standard materials cost of $60, consisting of 4 yards of fabric at $15 per yard. The standards call for 1.5 hours of assembly at $20 per hour. The following data were recorded for October, the first month of operations: Fabric purchased 6,500 yards x $ 14.50 per yard Fabric used in production of 1,200 tents 4,850 yards Direct labor used (a) Compute all standard cost variances for materials and labor. Materials price variance (usage basis). AnswerFU Materials price variance (purchase basis) Answer AnswerFU Materials quantity variance Answer AnswerFU Labor rate variance Answer AnswerFU Labor efficiency variance Direct materials Direct labor (b) Determine the standard variable cost of 1,200 tents produced, separated into direct materials and labor. Answer Answer 1,850 hours x $19.50 per hour Total standard variable cost Please answer all parts of the question. Answer Answer Answer AnswerFU
Chapter1: Financial Statements And Business Decisions
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Concept explainers
Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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Transcribed Image Text:Variance Computations and Explanations
Tarptent manufactures camping tents from a lightweight synthetic fabric. Assume the company's two-person tent has a standard
materials cost of $60, consisting of 4 yards of fabric at $15 per yard. The standards call for 1.5 hours of assembly at $20 per hour. The
following data were recorded for October, the first month of operations:
Fabric purchased
Fabric used in production of 1,200 tents 4,850 yards
Direct labor used
Labor rate variance
(a) Compute all standard cost variances for materials and labor.
Materials price variance (usage basis) Answer AnswerFU
Answer AnswerFU
Materials price variance (purchase basis)
Materials quantity variance
Labor efficiency variance
Direct materials
Direct labor
(b) Determine the standard variable cost of 1,200 tents produced, separated into direct materials and labor.
Answer
6,500 yards x $ 14.50 per yard
Answer
1,850 hours x $19.50 per hour
Total standard variable cost
Answer
Please answer all parts of the question.
Answer AnswerFU
Answer AnswerFU
Answer AnswerFU
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